Desperate Need In Medical Supply Line Brings Big FCPA Risk

By on April 21, 2020

April 21, 2020

A disastrous shortage of essential equipment has sent states, the federal government, and healthcare providers and manufacturers scrambling, and many are looking abroad for sources. Overseas suppliers, meanwhile, have ramped up production. A Chinese electric car manufacturer is said to have retooled and within weeks become the largest manufacturer of face masks in the world.  As U.S. companies attempt to negotiate the acquisition and customs challenges presented by these developments, they face a big risk of running afoul of the Federal Corrupt Practices Act. This post includes some recommended best practices, including tips on how to take a “deeper dive” when doing due diligence on overseas suppliers, agents, and distributors.

Pulling out all stops as they attempt to fill shortages of PPE, tests and essential equipment to fight the Covid pandemic, many states, the feds, and some healthcare providers are looking for overseas sources. It’s a situation ripe for FCPA violations.

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Sheppard Mullin

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